Bankers Trust to Pay $63.5 Million in Fines

Bankers Trust Corp. has agreed to pay $63.5 million in fines to settle charges that it boosted its financial performance by unlawfully diverting millions of dollars from unclaimed customer accounts into its own coffers. The settlement will not affect Bankers Trust’s planned merger with Deutsche Bank, both banks said in a statement. The plea, entered by a bank lawyer before a federal judge, brought a speedy resolution to accusations that the bank made false entries in its books to conceal the true source of $19.1 million its employees diverted. Bankers Trust will pay a $60-million fine to federal authorities as well as a $3.5-million fine to the state of New York. U.S. Atty. Mary Jo White said in a statement that the bank initially minimized the extent of its officers’ and employees’ culpability. She said an investigation is ongoing; Bankers Trust said it will continue to cooperate. Prosecutors alleged that because of pressure to meet revenue targets, the bank’s officers and employees stole the money and used it to pad Bankers Trust accounts.